Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Latin America
Related: About this forumVenezuela Default Imminent, Chavez Legacy Rests In Pieces
Venezuela has been on default watch for months. Its credit rating is already in the gutter, at CCC at Standard & Poors. With oil now $20 lower thant it was when the S&P made that call, a default is no longer a question of if, but when.
A recent emergency economic decree is likely too late to save anyone but president Nicolas Maduro. After two years of inaction and the recent decline in oil prices, Barclays Capital analyst Alejandro Arreazaa said a credit event in 2016 is increasingly difficult to avoid. In other words, oil major PDVSA and the government it bankrolls is going bankrupt.
...snip...
Figures released Wednesday by the Central Bank of Venezuela show that foreign currency reserves were just around $20 billion in the third quarter, but by the end of November they hit just $14 billion, the lowest ever. Net assets are also seen shrinking to around $24 billion, roughly $10 billion less than a year ago. Considering current oil prices, any reasonable additional import cuts may be insufficient to cover the financing gap.
Maduro keeps reiterating his governments willingness to pay its debts, but his anti-Yankee rhetoric and (h)is hardline against multinationals there makes him hard to believe. The official position shows a lack of understanding of the magnitude and roots of the crisis, making for this default to be the biggest Latin America has seen since Argentinas in 2001 and its more strategic default on the same debt in 2014.
http://www.forbes.com/sites/kenrapoza/2016/01/20/venezuela-default-imminent-chavez-legacy-rests-in-pieces/#2715e4857a0bf2cbf85208f4
A recent emergency economic decree is likely too late to save anyone but president Nicolas Maduro. After two years of inaction and the recent decline in oil prices, Barclays Capital analyst Alejandro Arreazaa said a credit event in 2016 is increasingly difficult to avoid. In other words, oil major PDVSA and the government it bankrolls is going bankrupt.
...snip...
Figures released Wednesday by the Central Bank of Venezuela show that foreign currency reserves were just around $20 billion in the third quarter, but by the end of November they hit just $14 billion, the lowest ever. Net assets are also seen shrinking to around $24 billion, roughly $10 billion less than a year ago. Considering current oil prices, any reasonable additional import cuts may be insufficient to cover the financing gap.
Maduro keeps reiterating his governments willingness to pay its debts, but his anti-Yankee rhetoric and (h)is hardline against multinationals there makes him hard to believe. The official position shows a lack of understanding of the magnitude and roots of the crisis, making for this default to be the biggest Latin America has seen since Argentinas in 2001 and its more strategic default on the same debt in 2014.
http://www.forbes.com/sites/kenrapoza/2016/01/20/venezuela-default-imminent-chavez-legacy-rests-in-pieces/#2715e4857a0bf2cbf85208f4
InfoView thread info, including edit history
TrashPut this thread in your Trash Can (My DU » Trash Can)
BookmarkAdd this thread to your Bookmarks (My DU » Bookmarks)
3 replies, 902 views
ShareGet links to this post and/or share on social media
AlertAlert this post for a rule violation
PowersThere are no powers you can use on this post
EditCannot edit other people's posts
ReplyReply to this post
EditCannot edit other people's posts
Rec (2)
ReplyReply to this post
3 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
Venezuela Default Imminent, Chavez Legacy Rests In Pieces (Original Post)
FBaggins
Jan 2016
OP
Oil prices now don't cover the cost of product according to chavista prick Diosdado Cabello
Bacchus4.0
Jan 2016
#3
Bacchus4.0
(6,837 posts)1. over 900 Bs to the dollar now
FBaggins
(26,760 posts)2. Don't be silly
It's officially six Bs to the dollar and has been for years.
You forget. We're talking about a government that thinks that economics must obey the political will. As when their economy czar tells us that inflation doesn't really exist
Bacchus4.0
(6,837 posts)3. Oil prices now don't cover the cost of product according to chavista prick Diosdado Cabello
pero hay patria!!